Replies to This Discussion

Permalink Reply by Bill Land on January 12, 2016 at 10:42

Where is your 160 acres? That is very low bonus in comparison to what I've heard.

Thanks Don.

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Permalink Reply by Paul Butler on January 8, 2016 at 2:18

GeoSouthern has a terrible reputation. 

Many of the principals, including Meg Molleston , have in fact faced extremely serious theft charges from Anadarko.

See the attached court order.

In addition, the Molleston run Land Department is not well regarded.  Attached is a Texas case detailing how the GeoSouthern land department held a multimillion dollar Chase lease for 6 months before recording.  The result was a near catastrophe.

I would wait for a more reputable player to arrive on the scene.

Be extremely careful when dealing with GeoSouthern.

Attachments:

• Geosouthern_fed_ct_order.pdf, 247 KB
• geosouthern texas appeals court.docx, 42 KB

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Permalink Reply by Skip Peel - Mineral Consultant on January 8, 2016 at 3:14

Paul, many members do not have the option to "wait for another player".  Their development rights are already held by GEPH through the Encana sale.  Others may be in areas where there is insufficient open acreage to attract another operator.  Thanks for the warning and the back ground.  Unleased mineral interests should know something about the company they are dealing with and your example is just another reason to engage the services of an experienced O&G attorney when considering a lease offer.

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Permalink Reply by Paul Butler on January 8, 2016 at 3:23

10-4

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Permalink Reply by Paul Butler on January 8, 2016 at 3:52

Anadarko considered her a co-conspirator.

Why would Bishop agree to give an in house landman, Molleston (for less than 10 years so she only knows how to fill out forms), a sweet heart deal to purchase his company? 

As the Texas case illustrates, recording a lease in a timely fashion is beyond Molleston.  That mistake, in addition to generating legal fees, is especially bad. 

Every landman knows when you get a lease from a bank trust department-- you record it immediately. 

Trust departments, although quite skilled, are understaffed and they are famous for putting tracts on leases that should not be there.  The problem is especially acute when you don't lease all of the property owned by a trust. It's never intentional and is almost always Scrivener's error

Molleston styled herself "senior landman" but had no accounting, legal or engineering/scientific skills.

What was Molleston bringing to the party?

Molleston did have access to extremely valuable confidential/proprietary information.

That struck me as curious/telling.

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Permalink Reply by Paul Butler on January 8, 2016 at 4:40

A GHS member just called me regarding Molleston's sweetheart deal.

He asked me: "Aren't you buying the post modern/new millennium Big Daddy Warbucks/Little Orphan Annie shtick they tried to peddle in their depositions?

I thought that was funny

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Permalink Reply by Paul Butler on January 8, 2016 at 9:22

Check out this business practice example. 

GeoSouthern charged with stiffing associates (appeals ct decision attached hereto).

GeoSouthern loses a jury trial.

In a boorish fashion, GeoSouthern appeals the jury decision.

GeoSouthern feels free to man handle/play fast and loose with real, live oil & gas sophisticates like the JB folks.

How do you think they will treat plain folks?  Heaven help them.

Attachments:

• geosouthern_rig_appeals_ct_d.pdf, 119 KB

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Permalink Reply by Don Robertson on January 15, 2016 at 14:40

Pride Oil & Gas called me today just to make contact to verify phone # etc.  Said they will call next week to make an offer.  They may be too late.  GeoSouthern sent mail to me yesterday which was a copy letter of what they sent to the office of Conservation applying to drill 5 lateral wells in the section where I own land.

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Permalink Reply by Skip Peel - Mineral Consultant on January 15, 2016 at 14:54

Don, are you currently leased?  If not it is likely that Pride is leasing on behalf of GEPH (GeoSouthern).  You're comment, "they may be too late", doesn't make sense.

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Permalink Reply by Bill Land on January 18, 2016 at 3:57

Don, what STR are you in?

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Permalink Reply by Don Robertson on January 15, 2016 at 15:22

Skip, Pride oil & gas is represeting Vine Oil & gas

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Permalink Reply by Skip Peel - Mineral Consultant on January 15, 2016 at 15:30

Thanks for the clarification, Don.  However Vine and GEPH each own 50% interest in the vast majority of units formed by SWEPI and EnCana.  So it really doesn't matter which company you lease to if indeed you are unleased presently.  Don't get hung up on which of the two companies will drill the alternate unit wells, the best lease terms are the offer to take regardless of which company it comes from.

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